Renting to section 8

from Fremont, California

posted about 1 year ago

I am listing my 5 bedrooms house for rent for $4200/month. A family likes the house and has a section 8 housing voucher for 4 bedrooms. Housing only pays $3641 for 4 bedrooms voucher. The family is willing to pay the difference out of their pocket. I want to know if it is legal to do so? Is it okay for me to rent 4bedroom voucher and collect the extra from the tenants? If so do I need to notify the housing office? Does anyone have experience on this case, please help me?

Real Estate Investor from Las Cruces, New Mexico

That is generally how Section 8 works. HUD will only pay up to a certain amount for the number of bedrooms (including utilities) and the tenant pays the rest out of pocket. How much they qualify for determines what percentage of the rent comes out of their pocket.

Here is a guide to the fair market rents HUD will pay. Again the number includes utilities.

The more important question is, do you want to rent to Section 8? Take some time to read of on the hundreds of forum posts and some blog posts on the topic. Educate yourself on the pros and cons then decide if you want to do it or would rather have market tenants. You are going to get very strong opinions on either side so you have to decide for yourself.

Investor from Oakland, California

This is definitely not legal and certainly not recommended..............I've had section 8 tenants that in the screening process tell me they've worked things out like this at their other places.....I simply tell them what happens when you are "short" one month? Or, worse yet.....THEY now have something they can blackmail you with to the housing authority at any time they want....it's not worth it.

Find section 8 tenants with a 5 bedroom voucher....there are plenty out there.

from Fremont, California

replied about 1 year ago

Thank you all fir your advices. I could not find good tenants who have 5 bedrooms voucher. So I think I will go with 4s.

I prefer to rent it out without sec 8 but I don’t have anyone whi interest. I post my list on craigslist but nobody hit my ads. It seems the price is too high? where do you normally post ads fir renting if I don’t want to hire a property management company?

Real Estate Investor from Northern, California

replied about 1 year ago

The Housing Authority once told me that if the tenant pays the landlord anything outside of what the Housing Authority has knowledge of and previously approved, that both the tenant and the landlord could be kicked out of the program.